STARWOOD CAPITAL GROUP TO ACQUIRE TMI HOSPITALITY

Jun 24, 2014

Starwood Capital Group (“Starwood Capital”), a leading global private investment firm, and TMI Hospitality, Inc. announced that Starwood Capital, through a controlled affiliate of Starwood Global Opportunity Fund X, has entered into an agreement to acquire all of the outstanding stock of TMI Hospitality from the TMI Hospitality Employee Stock Ownership Plan. The acquisition includes 188 hotels, the management company and the development platform. The transaction is subject to customary closing conditions, including certain franchisor and lender approvals.

“From its inception, TMI has developed and operated more than 400 hotels, and I am pleased Starwood Capital recognizes the value created by our extensive experience and talented team members,” said Lauris Molbert, chairman and CEO of TMI Hospitality. “With Starwood Capital, TMI will be able to continue pursuing its growth strategy while fulfilling its mission of impressing guests.”

Starwood Capital Group To Acquire Tmi Hospitality

“The acquisition of TMI Hospitality, a proven and trusted property manager, offers Starwood Capital the exciting opportunity to build on our investments in select-service and extended-stay lodging,” said Suril Shah, senior vice president, acquisitions of Starwood Capital. “We are looking forward to continuing the legacy of TMI’s development and management platform.”

Starwood Capital and its investors currently own 103 select-service hotels covering two-thirds of the United States. Following the close of the acquisition, the firm will control 291 select-service and extended stay hotels across 39 states in the United States.

TMI Hospitality is a developer, owner and operator of more than 180 select-service and extended-stay hotels across 26 states. The Fargo, North Dakota-based company employs more than 4,000 team members.